At 12 p.m. on the 3rd, at a baekban restaurant in Samseong-dong, Gangnam-gu, Seoul. As the lunch hour began, the small restaurant quickly filled with office workers. Kimchi-jjigae (Kimchi stew) and side dishes were swiftly placed in front of seated customers. The price was 7,000 won. Park Seong-deuk, 32, an office worker who saw that the Kimchi-jjigae (Kimchi stew) was generously packed with big chunks of meat, laughed and said it was "hard to believe at this price in this neighborhood."
The 8,000-won pork-bulgogi ssambap ordered by a colleague who came along, a person surnamed Hwang, 31, also arrived quickly. When the pork stir-fry was served with a generous spread of wrap vegetables, Hwang looked surprised and said, "Wow, at this price?" Park said, "In a neighborhood where even a bowl of jjamppong costs 13,000 won, it's amazing you can get such a hearty meal."
Even amid so-called "lunchflation" (rising lunch dining costs), "ultra–cost-effective restaurants" that keep prices low are drawing attention. As office workers and college students with tight budgets keep coming, a "Beggar Map" that shares information on cheap eateries has even appeared and is making waves.
◇ Cutting expense by buying ingredients directly
The Samseong-dong baekban restaurant has been in business for 13 years. The price of Kimchi-jjigae (Kimchi stew) rose from 5,000 won at opening to 7,000 won now. Considering that the average meal cost for office workers in the same area is around 15,000 won, that's about half. That's according to an analysis of mobile payment data by NHN Payco.
To keep prices low, the restaurant buys ingredients without going through wholesalers. The owner also handles serving, reducing labor costs. The owner said, "It has to be cheap and plentiful for many customers to come, and only then can we keep the business going," adding, "I want to keep the current price by saving expense going forward."
In Jongno-gu, Seoul, there is also a place that sells its signature pork-bulgogi rice bowl for 5,500 won. That's about half the area's average dining cost. On the 2nd at lunchtime, the small shop with about 10 seats quickly filled up, and a line formed outside.
A person surnamed Kim, 28, who has run the shop for seven years, has raised the price of the pork-bulgogi rice bowl by only 600 won since opening. Kim said, "Because the shop is small, we naturally get to chat with customers, and regulars have increased," adding, "Operations are tight, but thinking of the frequent customers, I'm trying to hold on at the current price."
◇ "Beggar Map" guiding cost-effective restaurants grows popular
Restaurants using a low-margin, high-volume strategy existed in the past, but they are drawing more attention as prices have risen sharply lately. According to Statistics Korea's consumer price index, dining-out prices stood at 127.28 as of March this year. Considering that dining-out prices in the base year of 2020 are set at 100, that means they have risen nearly 30% in about five years.
Amid this trend, a "Beggar Map" service has emerged that marks only restaurants below a certain price on a map. Users can report cheap restaurants and share information. More than 40,000 users accessed the service in 10 days after it was released on the 26th of last month.
◇ Long lines at cafeterias open to the public
Through the Beggar Map, in-house cafeterias at public institutions that are open to the public have also become widely known. Representative examples are the B1 cafeterias at the Samseong, Seocho and Yeoksam tax offices in Gangnam-gu, Seoul. The public can use them daily from 12:10 p.m. Meal tickets cost 6,000 won.
Around 12 p.m. on the 3rd, about 30 people were already waiting in front of the cafeteria. The cafeteria side said that lately the number of first-time customers who find the place while looking at their smartphones has increased.
An office worker nearby, a person surnamed Park, 36, who was standing in line, said, "I've been coming here with my team members for a year," adding, "It used to be a cost-effective hidden gem only known to those in the know, so I'm worried more people will flood in."
However, as prices continue to rise, running cost-effective restaurants is also getting tight. Those who run such restaurants said in unison that labor and ingredient costs have surged. The number of restaurants in Seoul was 155,150 as of the end of last year, down 4,571 from a year earlier. There were that many more closures than openings.